Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.
It’s a busy morning for deals, so we’ve got the luxury of picking several to look at.
We’re opening with Endless completing the acquisition of Ecobat’s European battery distribution business. That’s because it feeds nicely into our deep dive of the day – a look at why private equity firms are finding more carve-out opportunities, featuring interviews with Joshua Adams of OpenGate Capital, Isabelle Pagnotta of Inflexion and Christophe Maitrier of Montagu Private Equity.
Next, we look at the trend of US private equity firms taking a punt on Europe’s digitization. First we have Great Hill Partners acquiring a German digital parking infrastructure provider, then Accel-KKR taking a majority stake in a UK home care management software company and finally Carlyle buying into a Dutch payment verification software provider.
One potential US investment in Europe has fallen through, however, after Thames Water said that KKR is not going ahead with an investment in the utility.
That’s all the deals we could cram into the write-up – but do check out the Deals section further down the Wire or the Deals section of the website to see what else was happening this morning.
Carve-outs are in
We’re taking a deep dive into carve-outs this morning, looking at what’s driving the deals and how GPs approach such transactions. As luck would have it, we’ve got a fresh one to report.
UK-based private equity firm Endless has completed the acquisition of Ecobat’s European battery distribution business.
Read the premium version of the Wire for the unit's turnover and growth plans.
This deal ties in nicely with our carve-out deep dive this morning. Previous owner Ecobat is a battery recycling business based in Dallas, Texas. There could be more such deals involving US businesses dispersing their European assets, Joshua Adams, partner at carve-out specialist OpenGate Capital, told me.
To find out why, along with the views of Adams, Isabelle Pagnotta, partner and head of business services at Inflexion, and Christophe Maitrier, a partner at Montagu Private Equity, on the challenges and opportunities in carve-out, read the premium Wire.
Check out the full article for a list of corporations that sources have told us are looking at divesting assets this year, as well as more comments from Pagnotta, Adams and Maitrier on why the barrier to entry in the carve-out market remains high.
Parking push
We’re going to be taking a deep dive into why US private equity firms are investing so heavily in Europe in the coming weeks. One factor that sources have mentioned to me in reporting for that story is that Europe is a few years behind the US when it comes to digitization. An investment banker quoted one number to me – that 40 percent of people in Germany still pay by cash at parking meters.
So it’s no surprise that Great Hill Partners – which opened a London office in 2023 – has this morning agreed to buy a majority stake in Peter Park System, an AI-driven digital parking infrastructure provider based in Munich.
Read more on the growth plans in the premium version of the Wire.
Transatlantic
Speaking of US private equity firms investing in Europe’s digitization, this morning Accel-KKR said it has acquired a majority stake in CareLineLive, an all-in-one home care management software company based in the UK, to spur accelerated growth, expansion and product development.
Meanwhile, Carlyle Europe Technology Partners has made a strategic growth investment in SurePay, a European payment verification software provider, in partnership with Rabobank’s investment arm Rabo Investments.
Water down
One potential US investment in a European company looks like it’s not going ahead, however. This morning, Thames Water said that KKR is not going to invest in the company.
Thames Water is the UK’s largest water utility but is struggling financially and could be renationalized.
That’s everything from me today. As mentioned, check out the Deals section below or the Deals section of the website to see the other deals we covered this morning.
Rafael Canton will write to you from New York later today and I’ll be back with you again tomorrow.
Cheers,
Craig
Read the full Wire commentary on PE Hub ...
